Only 815 Ex-NHIF Staff to Transition to SHA

Members of Parliament (MPs) have been informed that less than half of the defunct National Hospital Insurance Fund (NHIF) former employees will be absorbed into  the newly established Social Health Authority (SHA).

The lawmakers have been informed that Out of 1,737 ex-staff, only 815 will transition to SHA, while the remaining 922 will be redeployed elsewhere within the public service.

The revelation was made during a session with the National Assembly’s Health Committee on Monday, February 10, 2025, where Health Principal Secretary Harry Kimtai and acting SHA Chief Executive Robert Ingasira provided updates on the staff transition process. The Public Service Commission (PSC) has approved the new staff establishment for SHA, capping the number of employees at 815.

The transition process, which began on November 21, 2024, when the PSC took over the 1,737 ex-NHIF staff, is expected to last six months or until SHA completes its recruitment process, whichever comes first. Suitability tests for the ex-NHIF staff transitioning to SHA are set to begin before the end of February 2025, ensuring that only qualified individuals are retained in the new health authority.

Legal Framework and Staff Rights

The transition is guided by Clause 6 of the First Schedule of the Social Health Insurance (SHI) Act 2023, which mandates that SHA competitively recruit its staff while giving priority to suitably qualified ex-NHIF employees. Those not appointed by SHA have the option to either retire from public service or be redeployed within the public service.

Mr. Kimtai emphasized that the SHA Board has consulted both the Attorney General and the PSC to ensure a smooth transition. He also assured lawmakers that the Ministry of Health is closely monitoring the process to prevent any irregularities. “If anything goes wrong, I assure you that will be reversed. The law must be followed,” he said, referencing a recent incident where a decision by the SHA Board chairman was overturned for non-compliance with legal provisions.

Concerns Over Favoritism and Morale

However, the transition has not been without controversy. Lawmakers raised concerns about favoritism and unilateral appointments within SHA, which they claim have demoralized staff. Nyeri Town MP Duncan Mathenge pointed out that senior officers were bypassed in favor of juniors for key positions, leading to systemic failures within the authority.

“The staff of SHA is very demoralized. Senior officers have been bypassed by juniors in the appointment of directors or heads of departments,” Mathenge said. Mogotio MP Rueben Kiborek echoed these sentiments, criticizing the SHA leadership for mishandling ex-NHIF staff during the transition and calling for the speedy recruitment of a substantive chief executive to bring stability to the organization.

Accountability and Next Steps

Committee chair Robert Pukose warned that the committee would launch an inquiry into the transition process and hold accountable anyone found to have engaged in favoritism or cronyism. “We will not tolerate any irregularities in the recruitment and appointment process,” Pukose said.

The SHA, which replaces NHIF as the body overseeing Kenya’s social health insurance, is a cornerstone of the government’s Universal Health Coverage (UHC) agenda. Its successful establishment is critical to ensuring seamless healthcare services for millions of Kenyans.

As the suitability tests approach, all eyes will be on the SHA and the Ministry of Health to ensure that the transition is transparent, fair, and in line with the SHI Act 2023. The coming weeks will be pivotal in determining whether the new authority can overcome its teething problems and deliver on its mandate to provide affordable and accessible healthcare to all Kenyans.